Trader Insights

Trader Insights

The world of trading and investment is a huge one. There are so many ways to go with trading, and so many different opportunities to profit that sometimes it can be intimidating to look at all the information available and decide on which area to concentrate on. This is especially true if you’re relatively new to the world of trade and are still learning the ropes.

With that in mind, we’ve put together a few pieces of advice from random areas of trading that might be of some use to a new trader. Just remember that everyone is going to have a different goal and focus, so the advice given here may not always apply to you.

Be Realistic About Your Short Term Goals

It’s good to have a dream or final objective that you’re shooting for, and if you’re thinking long term, it certainly doesn’t hurt to be ambitious. This kind of thinking, however, can be extremely dangerous at the beginning of your trading career, especially if you’re just learning.

When you’re starting out, do not make your goals unreasonable. Wanting to be a millionaire by the end of the month, and making trades with the savings of your entire family just to meet that artificial deadline are not just unfeasible, they are financially irresponsible and put your family at risk. Instead, concentrate on learning proper trading techniques, and making small, successful trades and small failed trades that teach you important lessons.

Don’t “Bet The Farm”

Trading is about risk and risk is unavoidable in any kind of dynamic market. However, trading on the market is not like gambling, where much of the success relies on prayer and random chance to see how a dice, play of the cards of other factor turns out. Much of the risk in trading can be minimized through good research, but there’s still always a chance that things won’t turn out the way you expect.

That means every trade you make, you should go in with the mindset that you can survive this loss. Never make a trade with amounts so large that the failure of this trade can effectively ruin you, and shut you out not just from trading, but your way of life. Even if a trade you’re about to make is a “sure thing,” don’t place your entire fortune on it, thinking you’ll be twice as rich. There’s no such thing as “twice as poor” when you’ve lost everything twice over.

Oil Is Recovering, But Not Strongly

Compared to 2014, 2017 is a much better year for oil, and for people that are making traditional investments in oil. Prices are starting to climb again, and while things are looking better for the oil industry than after the plunge in 2014, this doesn’t mean that traders can look forward to a meteoric rise in oil’s performance.

There are a few reasons for this, but what it generally means for people thinking of trading oil in the commodities market is that there’s a small, but constant, gradual upswing in the price and performance of oil. For both traditional investors and speculative traders, that means that there’s some money to be made here, just not in the same amounts as earlier periods. Prices of oil remain low, and unless something dramatic happens to the surplus of oil in market, there aren’t going to be any big spikes unless demand suddenly shoots up.

Renewable Are In A Boom Period

Whether it’s solar, wind, geothermal or even tidal, there is an increased global market interest in renewable energy, and this is actually one of the contributing factors to the oil industry not being as dynamic as it once was. Of course, the reality is that oil is a fossil fuel, a finite resource, and some day it will run out. It’s this long term thinking that is making many countries—especially in Europe—switch over to other forms of energy generation in order to head off any kind of industrial difficulties that may be experienced by countries entirely dependent on oil.

Because of this, companies that are focusing on renewable energy are making great strides and rising in value in the market. Even some traditional energy sector companies, such as oil companies, are gradually making the pivot over to renewable in some capacity thanks to the rosy outlook of this industry.

If you’re looking for a technology company to invest with for either traditional or speculative purposes, look to the rising stars of the renewable energy sector. The interactions with the market here are promising, and look to only get better with the passing of time.

Pharmaceuticals Can Be Incredibly Profitable

Another area which experiences volatility that is both good and bad is in the pharmaceutical industry, but that’s no real surprise. Considering the importance of health, and the fact that there are still so many illnesses and chronic conditions that people struggle against, the market for addressing—or even curing—these problems is always going to be a lively one.

On the one hand, there can be a certain negative volatility with pharmaceuticals, especially when scandals rock this particular industry. Because human health and lives are often at stake, a controversy with a pharmaceutical company can send stocks plunging. That, of course, may still be beneficial to binary options traders that can profits from such stark fluctuations. On the other hand, when new developments or discoveries are made, such as new, effective treatments for certain types of cancer, or promising new formula that may be effective in addressing Alzheimer’s Syndrome, or other conditions, this is a market with a guaranteed demand.

It does require a bit of research in order to properly be informed and make the right decisions when it comes to pharmaceuticals. However, investors that are willing to take the time to track important researchers, progressive companies, and the promising treatments can stand to make very substantial and consistent profits in a sector of the market where breakthroughs always have a lot of demand, and that demand will never shrink.